It would be easy to assume that if you borrow money, it'll cost you more or less the same regardless of where you borrow it from.
However, even comparing one high street bank with another you should be able to trim costs, while some lenders are more geared up towards short-term loans. That's why you've got to follow these top tips to make sure you get the best deal:
Even comparing one high street bank with another you should be able to trim costs
- Shop around, and don't be afraid to haggle.
- Ask to see examples of repayment plans with and without extras such as payment protection and other insurances – these push up the cost.
- If you don't understand anything or the lender uses jargon, ask questions.
- Use the internet to see what offers are available; use websites such as MoneySavingExpert, GoCompare, CompareTheMarket or moneysupermarket.com
- Contact your lender if you're having difficulty repaying the loan. All reputable lenders will rearrange terms to make life easier as it's in their interests that you continue to repay the loan.
- Don't be taken in by zero or low percentage deals; check the APR.
- Don't assume the dealer is offering the best rate; compare with other lenders.